Clearwater Paper Corporation (CLW)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 176,000 | 141,700 | 134,200 | 116,200 | 107,200 | 131,900 | 94,400 | 5,700 | -600 | 13,900 | 46,900 | 150,800 | 155,000 | 133,200 | 83,300 | 54,200 | 41,900 | -149,629 | -95,829 | -93,048 |
| Interest expense (ttm) | US$ in thousands | 31,900 | 30,200 | 30,800 | 33,600 | 34,200 | 35,100 | 35,500 | 34,200 | 35,200 | 35,700 | 39,000 | 41,400 | 44,400 | 47,800 | 48,900 | 50,100 | 49,800 | 76,000 | 63,500 | 51,100 |
| Interest coverage | 5.52 | 4.69 | 4.36 | 3.46 | 3.13 | 3.76 | 2.66 | 0.17 | -0.02 | 0.39 | 1.20 | 3.64 | 3.49 | 2.79 | 1.70 | 1.08 | 0.84 | -1.97 | -1.51 | -1.82 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $176,000K ÷ $31,900K
= 5.52
Clearwater Paper Corp's interest coverage has shown a general increasing trend over the past eight quarters, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has improved from 2.25 in Q1 2022 to 6.31 in Q4 2023, reflecting a positive direction in the company's financial health. This upward trend suggests that Clearwater Paper Corp's earnings before interest and taxes (EBIT) have been consistently strong enough to cover its interest expenses. Overall, the company appears to have a solid ability to meet its interest payments in the near term, which can be considered a positive sign for investors and creditors.